Brittanie Zakutney: Where if you have excellent credit they give you a 0% loan. However, you pay full list price, get no rebates and you may find it only applies to cars where the dealer has installed fancy wheels, charges for upholstery protection and special clear coat.
Antwan Schrum: 0% financing really is an interest-free loan, but it isn't always the best deal. Seriously.If you finance a car with a dealership, sometimes they offer a 0% interest rate. That means you don't pay any extra interest charges for borrowing the money to buy the car. If you read the fine print, you'll see some statement like "0% Financing for $16.67 per month per $1,000 borrowed." That means on a $20,000 car you will have a monthly payment of ~ $333 on a 5-year loan, if you finance the whole amount.The downside is that, in exchange for taking the interest-free loan, you usually have to give up any cash incentives that are advertised. Those incentives would lower the price of the car! , and therefore, your monthly payment. If that same car had a $2500 incentive and you took that, and then got a loan of 4%, then you'd actually have a note of ~ $322. You'd save $11 per month, or almost $700 over the life of the loan....Show more
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